Inventory management application in a textile firm integrated with analytic network process

In the globalizing world conditions, businesses need to reduce their costs to optimum levels in order to maintain their presence in the market. Minimizing inventory costs, which is one of the biggest cost items, is essential in order to survive in competitive field conditions. In addition, minimizing stock costs does not mean stock shortage. Although there are many risks such as the cost of holding stock and the formation of idle investments, the risk of not meeting the demand, losing customers and experiencing permanent losses in market share in case of stocklessness is a much more dangerous situation for businesses. For this reason, it is vital for companies to implement a successful inventory management in order not to miss the demands realized in global market conditions and to provide service at a high service level and at the same time to minimize inventory costs. A strong inventory management makes it possible for companies to maintain their cash flows in a healthy way and to be continuous in their commercial activities. As a first step within the scope of the thesis study, an analytical network process (ANP) method was applied in a textile company operating in Bursa in order to analyze the products that will provide maximum benefit to the company. Interactions between alternatives, criteria and sub-criteria were determined with the participation of the executive staff. As a result of the ANP application, priority values for 15 items were calculated, and the products with the highest added value for the company were revealed. Subsequently, safe stock quantities and reordering points were calculated in order to prevent customer losses related to stocklessness.